Comparative Analysis of the Securities Market Regulator’s Independence and Organizational Structure

Abstract

This paper aims to study independence and organizational structure issues in Japan and Russia. The choice of these countries for comparison is based on the latest reforms of financial regulatory systems in many countries, which mostly focused on adopting variations of the integrated model and objective model. Over the last two decades, 30 countries have formed a unified financial supervisor, 23 of them have established a single regulator in the last decade alone. The countries chosen for comparison also belong to the integrated model, and improving their regulatory systems using totally different models within the same country. For instance, Japan’s case might be a good example for ensuring the balance in the interests of several regulators and guarantying their independence from other regulators, involved in regulating financial market (MOF, Central Bank, Ministry of Economy, Trade and Industry). The second comparison country Russia, the legal system is close to Uzbekistan’s, from 2013 is applying single regulator model. Studying its experience might serve as a good experience for countries intending to better design their financial regulatory structure.